NEW DELHI/HYDERABAD – The Central Bureau of Investigation (CBI) has officially re-registered a case against two former employees of the Bank of India’s Hyderabad Main Branch for allegedly conspiring to misappropriate nearly ₹2.5 crore in customer and bank funds to fuel online betting habits.
The case, originally filed by the Hyderabad Central Crime Station (CCS) in September 2024, was transferred to the CBI’s Anti-Corruption-I unit in New Delhi following orders from the Hon’ble Lokpal of India.
The Accused and Modus Operandi
The primary accused are Vanga Balu Sandeep, a former officer in the credit department, and Smt. G. Shyamala, who served as the Clerk-Head Cashier-II at the Abids-based branch.
According to the investigation, the duo exploited their positions of authority to hatch a criminal conspiracy. Between 2021 and 2024, Sandeep allegedly made unauthorized debits from customer accounts—specifically those linked to housing and education loans—as well as the branch’s own office accounts.
The investigation revealed that Sandeep transferred these funds into his personal savings account at the State Bank of India. Upon being questioned internally by the bank, Sandeep reportedly confessed that the misappropriated money was used to participate in online betting games.
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Financial Misappropriation
The scale of the fraud is documented across two primary categories:
- Unauthorized Personal Transfers: Sandeep allegedly moved ₹1,41,83,000 into his personal accounts.
- Joint Cash Withdrawals: In a further breach of trust, Sandeep and Smt. G. Shyamala allegedly withdrew ₹1,07,65,600 from the Treasury Settlement account without authorization, sharing the proceeds.
The total sum fraudulently diverted reached ₹2,49,48,600. While Sandeep has since repaid approximately ₹1.26 crore, the bank remains defrauded of a balance exceeding ₹1.22 crore, plus applicable interest.
Deeper Probe and Legal Action
The Lokpal of India directed the CBI to take over the case to conduct a “deeper probe regarding a larger conspiracy”. The Government of Telangana and the Department of Personnel and Training (DoPT) granted the necessary consents and notifications in early 2026 to facilitate the federal investigation.
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The CBI has booked the accused under Sections 409 (Criminal breach of trust by public servant) and 420 (Cheating) read with 120-B (Criminal conspiracy) of the Indian Penal Code. The investigation has been entrusted to Shri Aditya Kumar, Inspector of Police, CBI AC-I, New Delhi.